Article date: 6 July 2004Norwich Union is increasing the fixed interest rates on its FixedRate Lifetime Mortgage by 0.20%. The interest rate will increase to7.19% for business introduced through IFAs and to 7.49% for directbusiness. The new rates will be effective on loans completed on andafter 2 August 2004.
The Fixed Rate Lifetime Mortgage is a mortgage-based equityrelease product.
Mark Kelly, Director of Norwich Union Personal Finance, said:"Equity release plans provide a solution for many older home ownerswho have no other way of generating a cash lump sum and want tostay in their own home. In recent weeks we have seen long-terminterest rates move upward and therefore the cost to Norwich Unionof raising funds has increased. These rate increases reflect theincrease in funding costs. Existing customers whose loans havealready completed or who will complete before 2 August 2004 areunaffected by this change."
Press office contact:
David Gwyer 01904 452828 07800 699508
James Evans 01904 452791 07790 487105
Notes for editors:Minimum property valuesapply. Norwich Union Equity Release is a lifetime mortgage securedon your home. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOUWANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERITIT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE. A personalillustration and full written terms and conditions are available onrequest. Norwich Union Equity Release Limited No. 3286484.Registered at 2 Rougier Street, York YO90 1UU. Not available inNorthern Ireland, the Channel Islands and the Isle of Man. This isa lifetime mortgage. To understand the features and risks, ask fora personalised illustration. Norwich Union is the UK’slargest insurer. It is a leading provider of life, pensions andinvestment products and one of the leading IFA providers. IFAsprovide around 70% of the company’s long-term savingsbusiness. Norwich Union has strategic alliances with buildingsocieties and other leading UK brand names including Tesco PersonalFinance and The Royal Bank of Scotland Group.